Legal Battle between CoinSwitch and WazirX Over Trapped Funds
If you’ve been following the recent developments in the crypto world, you may have heard about the legal battle between CoinSwitch and WazirX over trapped funds. Here’s a brief overview of the situation:
What Led to the Legal Dispute?
- CoinSwitch has substantial assets stuck on WazirX’s platform, including fiat currency, ERC20 tokens, and other cryptocurrencies.
- Despite repeated attempts to resolve the issue with WazirX, CoinSwitch has been unable to recover the funds.
CoinSwitch’s Response to the Situation
- The affected funds represent a small portion of CoinSwitch’s total assets, with less than 1% directly impacted by the cyberattack.
- To ensure platform stability, CoinSwitch is utilizing its own treasury reserves to maintain a 1:1 ratio for user holdings.
Legal Action Taken by CoinSwitch
- After failed attempts to recover the funds, CoinSwitch has decided to pursue legal action against WazirX.
- The exchange has been in constant communication with WazirX but has not seen any progress in resolving the issue.
WazirX’s Response and Legal Move
Following the lawsuit filed by CoinSwitch, WazirX’s Founder and CEO Nischal Shetty responded on social media, emphasizing their commitment to treating all users fairly, regardless of their size. Shetty stated that fairness to all users is paramount, even if it means resorting to legal actions.
WazirX’s Moratorium Filing in Singapore High Court
- WazirX’s parent company, Zettai, has filed for a moratorium in the High Court of Singapore under the Insolvency Act to restructure its liabilities.
- A moratorium is a legal pause that allows the company to protect its assets while working on a restructuring plan.
Hot Take: Understanding the CoinSwitch-WazirX Legal Battle
As a crypto enthusiast, staying informed about legal disputes in the industry is crucial. The ongoing battle between CoinSwitch and WazirX sheds light on the importance of security measures and transparency in crypto exchanges. Keep an eye on how this situation unfolds to learn valuable lessons on safeguarding your assets in the crypto space.
Sources:
– CoinSwitch Twitter Update
– WazirX Moratorium Filing
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